Q: Can I get your opinion on the stock and their latest earnings report? Thank you.
5i Research Answer:
ALV remains cheap at 6X earnings, even with a 35% gain this year. In the 2Q, EPS was 26c, better than 19c expected. Sales of $13.9M did miss estimates. Cash flow was $11M. Daily sales decreased 29%, but realized prices rose. Per share cash flow was 30c, still nicely above the 14c dividend. The outlook calls for slim growth in 2023 followed by a return to higher growth in 2024. We find it interesting for sure on its low valuation and general outperformace over the sector. It has the usual sector and small cap risks, of course but we like management here, and it has some solid shareholders such as John Wright who has had great industry success.